Arizona Real Estate News - DreamHomesInAz.com

A Good First Impression Can Help Sell Your Home

Your major role as a seller will be to make your home as attractive as possible to potential buyers. The time, effort and limited financial investment involved can give you the competitive edge needed to sell your home when you want- at the price you want.

Your Home’s Exterior Creates The Prospective Buyer’s First Impression

Since the prospective buyer sees the exterior of your home first- it is worth spending a little time and effort to make sure that a good first impression is made.

Here is a recommended checklist:

__ Lawn is well cut and neatly trimmed around the walks and drive.

__ Flower garden is weeded.

__ Shrubs are trimmed and dead trees and branches eliminated.

__ All debris is disposed of and toys and lawn equipment are neatly stored.

__ Fences and gates are repaired and repainted, if necessary.

__ The roof, gutters and downspout are in good repair.

__ Driveways and sidewalks are washed down and checked for cracking and crumbling.

__ Cracked windows and torn screens are replaced. Screens, windows and window sills

are washed. Doorknobs are polished.

__ Doorbell and front lights are in good working order.

If you were planning on painting your home within the next year- it is a good idea to go ahead and paint before showing it. A new paint job, well done, will normally enhance the sale value a good deal more than the cost of the paint.

If your home’s exterior looks clean, orderly and in good repair, that’s the impression your house will first convey.

Pam Stevenson, ABR, GRI, CRS is a Realtor for Liberty Properties Real Estate Services Professionals. She received her real estate licence in 1988 and has written several real estate publications for different newspapers.

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A SPOTLESS INTERIOR WILL REINFORCE

YOUR HOME’S FIRST IMPRESSION

Interior dirt and clutter can obscure your home’s good features, so start with a full house cleaning from top to bottom. Store unused items in closets and storage areas or hold a garage sale. The less clutter you have, the more spacious your home will appear- an important selling point.

Take an inspection tour of your home, observing it as a potential buyer would.

Use the following check list to make sure it’s ready to show:

__ Walls are clean and free of smudges, fingerprints and dents.

__ Woodwork and wallpaper are inspected for problem areas; wallpaper is cleaned and

woodwork is waxed.

__ Badly worn furniture is temporarily stored and out of sight.

__ Curtains and drapes are freshly laundered or cleaned.

__ Rugs and carpets are shampooed. Floors are waxed.

__ Loose doorknobs, sticking doors, windows and warped drawers are repaired.

__ Leaky faucets are fixed. Water discoloration in sink is eliminated.

__ Loose stair banisters are tightened and steps are free of objects.

__ Light fixtures are in good working order. Discolored or cracked switchplates are replaced.

__ Closets, shelves and drawers are organized to display spaciousness.

__ Clothing is hung neatly and shoes and other objects are neatly arranged.

__ Bathrooms are sparkling clean. Tub and shower caulking is repaired.

__ Bedrooms are neat. Bedspreads and curtains are attractive.

__ The kitchen is clean and tidy, including cupboards, stove and oven.

__ The basement, attic, and garage are clean and well organized.

__ Mirrors, picture frames and glasses covering pictures are clean.

__ Mirrors are strategically placed to create and impression of added space in problem areas.

__ Lamp shades are in good condition.

__ Electrical connections are plugged in.

Consider painting walls and replacing carpeting if cleaning doesn’t do the trick. It is also important to keep lighting in mind when you show your home. Good lighting will make your home seem more cheery and spacious.

Remember that over-improving doesn’t pay. Don’t plan major improvements on your home. Most home buyers want to make their own major changes. You are usually wiser to sell them the potential- at a price they can afford.

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Last Minute Details That Will Maximize

Your Home’s Selling Potential

Showing your home is all important to its sale, and there are many ways you can help your real estate professional do his or her job successfully.

__ Turn off the television or radio low enough to allow the salesperson and buyer(s) to talk, free of disturbances. If you would like to play music- classical music is always best.

__ If you are unable to leave while your home is being shown, it is best to take children and/or pets outside. This will help keep the prospect’s attention focused positively on your house.

__ Eliminate any bad odors. Burning a vanilla flavored candle or baking cookies can help if you have pets or your house has been closed up for some time.

__ Adequate lighting is important. Open the curtains and turn on all the lights and lamps- just like a model home.

__ In winter, it is a nice touch to have a fire lit in the fireplace.

__ Make sure the kitchen sink is free of dishes.

__ Put magazines and children’s toys in order.

__ Fresh flowers add to the beauty of your home inside and out.

If you are home while your home is being shown, please remember the following:

__ Be courteous, but don’t force conversation with the potential buyer(s). Don’t follow the real estate agent and potential buyer(s) around the home.

__ Never apologize for the appearance of your home. Let your real estate agent answer any objections.

__ Leave it to the real estate professional to emphasize the features of your home.

__ Let your real estate professional discuss price, terms, possession and other factors with the potential buyer(s). Your real estate professional has the experience and training necessary to bring negotiations to a successful conclusion. Too often the homeowners give hints that they are anxious to move and then potential buyers offer a lower price. Remember the listing agents job is to get you the best price and terms for you while the buyers agent’s job is to get the best deal for their buyer. If you have followed the guidelines provided, you’ve already done your part by making sure yourhome creates a good first impress impression.

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So You Want To Sell Your Home- Where Do You Begin?

First you will want to make a list of the items that need to be done to make your home presentable to the whole world. Give yourself a few weeks to get everything in order. You will need to accurately determine the value of your home. Instead of paying hundreds of dollars on an appraisal, find a Realtor that will give you a free market analysis. Realtor’s use the much of the same information as appraisers do in determining value.

Today many sellers and buyers are internet saavy. Some Realtors will let you advertise for free on their web site if you do not have a web site of your own. You will want to make sure that you advertise your home as much as possible. Make sure that you are not alone if you show your property yourself- you want to keep you and your family safe.

Whether you market your home yourself or hire a real estate professional -you need to be prepared and familiar with the process. It is important to use the right Title company. When comparing prices with different Title Companies be sure to ask what “all ” of their fees are so you don’t get any surprises at closing. Depending on how long you have lived in your home- you can receive substantial discounts from the Title company when you sell your home.

Familiarize yourself with the real estate contracts. The approved Realtor Purchase Contract is eight pages long. It is a good idea to have counter offers and addendums on hand too. You will need to have a termite inspection and the buyer will probably want to have a home inspection.

You may want to check out the home warranty programs to give the prospective buyers peace of mind that your home is in good shape when they buy it. Call around to make sure you get the best deal; but be sure to compare apples to apples (lowest price doesn’t always mean it is the best deal).

To protect yourself, you will want to fill out a disclosure form of any potential problems with the home. If you sell your home through a Realtor- they will walk you through these necessary steps.

Once you have accepeted the Buyer’s Offer to Purchase- the earnest money needs to be deposited right away with the Title Company. Submit documents and information to the escrow holder, such as: addresses of lien holders, tax receipts, equipment warranties, home warranty contracts, any leases and/or rental agreements. You will need to sign the escrow instructions, grant deed and other related documents required to complete the transaction.

Now is the time to order inspections, receive clearances and approve final reports and/or repairs to the property as required by the terms of the purchase and sale agreement. Be sure to obtain the Deposit Receipt. Fulfill any remaining conditions specified in the contract and/or escrow instructions; approve the pay off demands and/or beneficiary’s statements.

Once it is all over with- go relax and take your family on a wonderful vacation. You deserve it!

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Where does Val Vista Lakes Stand In Comparison With Other Gilbert Communities?

Research shows that most buyers make their home buying decisions based on price and location. The past few years have been tough on the Val Vista Lakes resale market because of all the new home communities surrounding our area. Now that those communities are in the resale market- Val Vista Lakes shines above the rest and the housing prices are beginning to rise to the levels we deserve!

Val Vista Lakes has so much to offer. Our once multi-million dollar Clubhouse is valued between $6- $10 million dollars in todays market with the recent renovation and the rising resale value. VVL Residents have so many privileges with the standard $68.00 per month HOA fee (Gated Communities have a higher HOA fee). Most of the newer subdivisions in Gilbert have a Homeowners Association to help maintain the dignity of the community. By enforcing a set of standards, home values rise. Many subdivisions require a HOA fee and only enjoy having the grass mowed in the common areas- not Val Vista Lakes!

Did you realize that photograpers come from all over the United States to pay to use the Val Vista Lake facilities for beautiful backdrops in their magazines? Val Vista Lakes has a very prestigious presence with it’s high standards.

Val Vista Lakes is much more than a master planned community.

Residents can enjoy the many ammenities-

* Reception Center for Weddings and Parties at a substantial discount.

*. Eight Lighted Tennis Courts

* Two Racquetball Courts

* Weight Room

* Heated Olympic Size Swimming Pool

* Sandy Beach With Lagoon

* Gazebos & Ramada’s can be scheduled for small parties. Residents can enjoy 3 parties

per year of 25 people or less for absolutely free!

* Val Vista Lakes offers 900 acres of “water wonderland”

* 140 acres of community businesses

* 4 Sports Parks

* Bicycle Paths

* 24 subdivisions with 7 gated communities

There are many clubs available for everyone. The clubs include the Dad’s Club, Nifty Fifty’s, Play Group, Racquetball, Swim Team, Tennis, Women’s Club. All Val Vista Lakes residents are invited to join as many clubs as they wish.

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As Close As Possible To “The Perfect House”

Research indicates that most buyers buy homes based on price and location. In, addition, todays’s buyers want spaciousness, new or updated kitchens and bathrooms, a family room or great room off of the kitchen, a home office and good natural light.

Modern conveniences are important with energy efficiency and low maintenance. Many buyers want their home office equipped with numerous electrical and telephone outlets- and a high speed data line if possible. Most homes can be retrofitted for modern amenities, but with little time to spend on home maintenance, buyers pay a premium for homes that are in move in condition.

Other features that define “a perfect home” are: a flexible floorplan with architectural distinctiveness and easy flow through access( that is, one where you don’t have to walk through rooms to get to other rooms), a formal entry; a bathroom on each level, an attached garage with easy access to the kitchen, a low maintenance private yard, plenty of storage space, a security system, quality construction, a conveniently located laundry room and a nice master suite.

The best way to begin the process of finding the home that meets your needs is to follow the Benjamin Franklin approach. Make a list of all of the items you like in your current home and a list of all the items you don’t like in your current home.

Make a dream home list of everything you want in your next home. Take your wish list when you look at houses. Give a copy of your list to your real estate agent. Your realtor can tell you how realistic your wants are and if you need to rearrange your priorities.

Before you purchase a home, try to detach yourself emotionally and analyze how everything measures up to your wish list. You need to feel comfortable in a home. Your home is your sancturary from the outside world. It is the place where you relax and enjoy life with your friends and relatives.

It is a good idea to create your list ahead of time so that if you find out that you suddenly have to move - you have a set idea of what you will be looking for. If a job transfer comes suddenly, you will feel more prepared and be one step ahead of the game. It is easier to plan ahead ; just in case, then to have to make those big decisions with a lot of other big decisions,

Remember- the “perfect house” does not exist- but you can be very happy when you get as close as possible.

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Capital Gains Tax...

- How Do I win The Game When I Sell My Home?

Before 1997, taxpayers that sold their primary residence could defer tax on their gain if they bought another home within 2 years of selling if the price of the new home was at least equal to the price of the home that was sold. Today- it is not necessary to buy another home to receive capital gains relief. You only pay tax on gain you realize over $250,000, for a single individual and $500,000 for a married couple.

For example, let’s say that you and your wife bought your current home for $300,000 in January, 1997. You sold it for $450,000 in March, 1999. Your $150,000 gain is significantly less than $500,000, so you won’t be taxed on the gain. To qualify for this gain exclusion, the seller must have occupied the property for two of the five years before the sale. There is no limit on how many times you can take the exclusion, but it can only be taken every two years.

What if your employer transfers you to a different state a year and one-half after you buy your home? Will this disqualify you from taking the capital gain exclusion because you were in the home less than two years?

SELLER TIP: The 1997 tax law did not clearly spell out how much capital gains tax homeowners owed if they sold before the required time limit. A law passed in 1998 clarified the issue. To calculate how much tax you would owe on your gain, multiply the exclusion amount you ‘d be entitled to if you owned your home for two years ($250,000 for singles or $500,000, if married and filing jointly) by your residency period expressed as a fraction of two years.

Let’s say you bought a home in San Francisco for $350,000 on June 30, 1997. Your employer transfers you to New York City 18 months later, so you sell your home. You close on the sale December 30,1998 and realize a profit of $150,000. You’re single so you’d be entitled to a capital gain exclusion of $250,000 if you had resided at the property for two years. You have resided at the property for 3/4 or 75 percent of the statutory period. To arrive at this fraction, divide 18 months by 24 months (or 1.5 years by 2 years). Seventy-five percent of $250,000 is $187,500. You will have no capital gain liability on this sale because your $150,000 is less than $187,500.

The new tax law reduced the maximum capital gains rate from 28 to 20 percent. If you acquire a primary residence after December 31, 2000 and hold it for a minimum of five years before selling, the top capital gains rate will be 18 percent. Lower capital gains rates apply to taxpayers in the 15 percent tax bracket.

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What Should A Seller Disclose?

No longer does caveat emptor or “buyer beware” protect a seller when its time to sell a home. Today, with many lawsuits in our society- “seller beware” might be more appropriate.

Although it is not mandatory in all states to disclose material defects when selling a home- most Realtors will not list a home unless full disclosure is available. This protects the sellers and buyers from future problems. It’s easy to understand why. The major cause of after-closing disputes and lawsuits is items that could have or should have been disclosed.

Any material fact that would affect a buyer’s decision should be disclosed. For example, let’s say that your basement floods during heavy rains. In preparation for sale, you paint the basement walls and floor and in so doing, you conceal all evidence of past flooding. If you sell your home during the dry season, the buyers won’t be aware of the fact that the basement floods. This is a material fact that should be disclosed. In a recent case where flooding in the basement wasn’t disclosed, the buyers sued the seller and won.

Some sellers fear disclosure because they assume that it will keep their home from selling- but in reality, it protects them and the buyer in the long run. If you buy a home “For Sale By Owner”- make sure you get a full 3 page disclosure form and have the necessary inspections to protect yourself. When you list your home with a Realtor, they take care of this for you.

It is not always clear what needs to be disclosed. Determining what is material is somewhat subjective: A fact that is material to one buyer may not be to another. However, if you’re asking yourself if something needs to be disclosed, it’s safe to assume that it might be material to someone, so to be on the safe side, disclose it. Also, ask yourself if you would want to have the information if you were the buyer. If the answer is “yes”, then disclose.

The best way to avoid a lawsuit over property defects is to be proactive and disclose what you know about the property’s faults before the sale closes. In addition, it’s a good idea to disclose items of routine maintenance that must be taken care of in order to avoid future problems, like roof gutters that must be kept clean or a skylight that will leak unless it’s kept well-caulked.

To find out more about your disclosure obligations, consult a knowledgeable real estate agent, or real estate attorney, who’s actively working in your area. State, local and national laws may require that you make specific disclosures in addition to a general disclosure of material facts. For instance, Federal law requires home sellers to disclose known lead hazards in their home and State law requires information on swimming pool gate regulations for small children.

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Why Isn’t My Home Selling?

During the summer months- before school started, homes were selling very fast. Many sold within the first two weeks of being on the market. The greatest number of closings in the Val Vista Lakes area consistently occur in June from April and May buyers. What can you do if your home is on the market now- when sales have slowed down?

The most common reason a home doesn’t sell is that it’s priced too high for the market. In general, buyers will only pay fair market value for a home. The price a buyer is willing to pay may be more than the seller’s asking price if the home is priced competitively. But, you don’t see multiple bidding on homes that are listed for over-inflated prices, even in a seller’s market.

As a seller, it’s difficult to be realistic about the value of your property because of pride of ownership and your emotional attachment to the property. In other words, you may be inclined to think that your house is better than everyone else’s. That’s why it’s wise to consult with a real estate agent who’s knowledgeable about home prices in the area before selecting a list price for your home. Your list price should be based on an objective analysis of the comparable sales in your neighborhood. A good, straightforward agent can provide you with a rational assessment of how your home compares to others that have sold recently. He or she can also tell you how your home will stack up against the current competition in the local market.

The sellers should ultimately select the list price for their home, but this price should be based on a reasonable assessment of what the market will bear and not on the sellers wishful thinking. For example, you may think your home is better than your neighbors’s home that sold for $400,000 a few months ago. But, if your neighbor’s home had a lot of upgrades in paint, tile, carpet or a pool and your home does not; your home will probably sell for less.

Your home is most marketable when it is newly listed for sale. That’s when buyers and their agents will be most enthusiastic about the property. If the property is priced too high, agents and buyers will soon lose interest and will turn their attention to the next crop of new listings. If your home has been on the market for a few months with no offers and showing activity is dwindling, request a meeting with your agent to discuss the situation. Before you meet, ask your agent to talk to the agents who have shown your home for feedback. If the consensus is that your home isn’t selling because it’s priced too high, plan on adjusting the price as soon as possible. Sellers who have had difficulty pricing their home realistically initially may have difficulty reducing the price. Keep in mind that the longer a listing sits on the market over-priced, the lower the ultimate selling price will probably be.

Once the price is reduced, your agent should begin a new marketing campaigning to get the word out. In today’s market, it is very important that your agent market your home over the Internet. Many of the buyers, especially this time of year, are from out of town. Many saavy buyers look for homes on the Internet and contact the Realtors that list the homes. The more pictures your real estate agent uses to advertise your home on an Internet site, the better for you.

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Buying and Selling... Stress Free?

Buying or selling a home rates very high on the stress scale. When you buy a home, you want to get a “great deal” and when you sell your home, you want to make the greatest profit possible. If your home takes forever to sell, you feel deflated and if it sells too quickly- you wonder if you didn’t ask enough and sold too low.

Stress is a normal part of the equation when your home is for sale. It is only normal to feel a lot of pressure and want to get the ordeal over as quickly as possible. For buyers, they want to make sure that they are fully educated in buying the right home. It is not an easy balancing act for either party. What can you do to ease the pain?

Choose your real estate agent carefully. You want to hire an agent that understands your plans and cares about the outcome for you. It is vital to have strong lines of communication. There are many factors that can go wrong in selling or buying a home- you need an agent that can foresee potential problems and take care of them before they become real issues. Your agent should review the selling process with you and be honest about the market value of your home. Of course, you want to sell your home for the highest price and in the least amount of time. Don’t hire an agent that reflects back what only you want to hear- hire someone that works in the area, that knows Val Vista Lakes- that can give you the advise you need.

Buyers that move into Val Vista Lakes will benefit most by working with a Realtor that knows the area. Realtors that work in Val Vista Lakes will be sure to show off the lakes, clubhouse, reception area, tennis courts, racquet ball courts, beach with lagoon, heated olympic size swimming pool, ramada’s, parks, etc. etc. We have a lot to be proud of at Val Vista Lakes! There are many buyers that wait months to find the right home in Val Vista Lakes- the Realtors that work with these buyers keep their clients updated on any new listings in the area.

The Internet is a great source of information. For example, Realtor.com lists 1.3 million properties across the country that are for sale. You will find many resources on Realtor.com with maps, photos, school information, and community facts about homes in Val Vista Lakes. You can preview listings in almost any city in the United States on Realtor.com. Some Realtors will show up to 6 pictures of your home and community on Realtor.com. This is very important so your home can stand out among the many listings that do not have pictures on the Internet. Would you be more apt to view a home that you could see a sampling of pictures or a home that only has a few words written about it?

Share the workload with your family members. One of you can view the homes on the market while someone else learns about the financing options. Use e-mail, voicemail, and facsimile rather than spending endless hours on the telephone. If you do not have the time to spruce your home up so that it will show well, it would be well worth it to hire in help. A few dollars you spend on fix up can bring back hundreds or thousands more dollars when it comes time to close.

Plan regular family outings so you can get away from the pressure. Take day trips or go on weekend outings. Don’t eliminate stress reducing activities like jogging, cycling or working out. Stay involved with your favorite hobbies to have needed relaxation.

There will undoubtedly be times when you feel stressed or depressed. These are normal feelings and will pass. Once you have closed on your new home, these feelings will be replaced with anticipation and hope as you enjoy your new home and new surroundings.

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Best Time To Buy A House is Now!

Timing is everything. It’s amazing how time of year affects the sale of a home. Many homes that sold in the Spring and Summer 1999 months sold within 10-30 days. The same homes if they had been for sale during the slower months (September- December) could have stayed on the market for 90 days or more easily.

The most important factor in selling a home is the price. If the price is too high, the home will stay on the market for months no matter what the time of year is. If your home is priced right, the time of year makes a big difference in selling. The market value of a property is in part determined by the law of supply and demand. When there are more homes for sale than there are buyers- the market value of your home may decline. The market value of your home will change over time depending on market conditions.

Most local buyers with families buy homes based on the school year. Families prefer to be in a home and settled by the end of August. If you miss the local buyers- you are mainly dependent on people relocating to the area. The fastest growing circuit for finding buyers relocating is the Internet. Realtor.com has over 1.3 million hits on the average per month of buyers relocating to a new area. Buyers can instantly pull up homes in their price range without wading through newspapers ads and pages and pages in home buying magazines.

Currently the market has slowed down quite a bit for sellers. Sellers will have to be patient to get the higher prices that homes command during the peak season. This is the time of year many sellers will lower the price to compete with the high demand of homes on the market.

If you are considering buying a new home requiring a 6-8 month building time, this is the best time to buy. Why? Sales have slowed down, homes have been sitting on the market longer and better deals are available to the buyer. If you make an offer on a new build home now- you will have the advantage of paying lower prices and locking in at todays price. You can put your home on the market, and start at a higher price knowing that you are not in a hurry to move until your home is closer to being completed. If your completion date is between April and June, you benefit from selling your home at the best time of year. You get the best of both worlds. Of course, when you buy a new home, make sure you have a realtor represent you so you can negotiate the best price and terms and protect yourself incase your home does not sell. A realtor with the ABR designation has been trained to negotiate on the buyers behalf.

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What Do I Need...A Sellers Agent Or A Buyers Agent?

Before 1990, all Real Estate Agents represented the seller. If an agent listed a home, they represented the seller. If an agent brought a buyer to see a home- they represented the seller. Buyers had no one to represent them. All agents were obligated to get the best price for the seller no matter what.

Today things are much more fair. Listing Real Estate Agents represent the Seller and Buyer Real Estate Agents represent the Buyer. Can a Real Estate Agent represent both the seller and the buyer? Yes, but full disclosure must be given to both seller and buyer. Real Estate agents must be careful when they represent both sides because the liability is greater. It is like a balancing act for the Real Estate Agent to get the best price for the seller and the best price for the buyer. Most Real Estate Agents prefer to only represent the seller or only represent the buyer.

Think of it like this... You are in a car accident that was not your fault. You have an attorney represent your case. The same attorney is also working for the person that caused the car accident. If the attorney is working for both sides- someone is apt to feel as though they are not receiving fair representation. Your settlement could be much different than expected because your attorneys hands are tied- he is walking a tight rope representing both sides.

When you list your home with a Real Estate Agent -their job is to market your home so that it can sell at the best price for you in the least amount of time. Does this mean that they are expected to bring the buyer- No! In fact, if the listing agent brings the buyer to buy your home- the seller and the buyer must both sign disclosure forms stating that all parties know that the real estate agent is representing everyone.

Why is it important that each party be represented in the transaction? A seller should be represented by a Real Estate Agent that will market their home so that other agents will bring buyers. Sellers should be more concerned with their Real Estate Agent advertising their home so the maximum number of buyers can find it easily. Sellers need a Realtor that advertises on the MLS and on the Internet at various sites. Sellers should not expect the Listing Agent to show their home- but, of course the Listing Agent will show their home if they are working with an interested buyer.

Many buyers think that they can get a better deal on buying a home if they go straight to the Listing Agent. In reality, the Listing Agent represents the seller and is obligated to get the seller the best price. Buyers would be better off to work with one Real Estate Agent that only works for them. The buyers Realtor can pull up comparable homes that have recently sold and that are currently on the market to determine if the sellers listing price is accurate.

What is the best case scenerio for the seller or buyer? You can have a Realtor represent you in the sale of your home as the listing agent. The same Realtor can represent you in buying your new home as your buyers agent. This way you are being represented in the best way possible.

Pam Stevenson, ABR, GRI, CRS is a Realtor for Liberty Properties Real Estate Services Professionals. She received her real estate licence in 1988 and has written several real estate publications.

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Real Estate Agent, Realtor, CRS, GRI, ABR FSBO-

What does it really mean?

There is a difference between a Real Estate Agent and a Realtor. A Real Estate Agent is someone that has completed the required schooling and testing by the state. A Real Estate Agent can only list your home exclusively. The Real Estate Agent can not list a home on the multiple listing service. A Real Estate Agent is the only Agent that can show your home. Most Real Estate Agents do not list homes on the Internet, so they are limited to flyers and newspaper advertising. The buyers in the higher price ranges are more educated and prefer to find homes on the Internet because they can find the preferred home instantly with out looking through hundreds of ads that don’t pertain to what they want.

Realtors are Real Estate Agents that can list homes on the Multiple Listing Service. By listing a home on the Multiple Listing Service, this gives the home much more exposure. There are thousands of Realtors in Maricopa county. When a client calls on a Realtor to help them find the right home, the Realtor can look in the MLS for certain criteria- Price, size, no. of bedrooms and baths, pool, location, certain school district. The Realtor can then show the client each of the homes in a given area. Realtors have a special “Code Of Ethics” they must follow- Real Estate Agents do not.

Many Realtors continue their education and have further designations that show greater skill in working with buyers and/or sellers. CRS and GRI are designations that Realtors earn to better represent their clients. CRS means Certified Residential Specialist. GRI means Graduate Of Realtor Institute. The slogan for GRI’s is “The Mark Of Excellence”. The designation for a Buyers Realtor is ABR (Accredited Buyer Representative). The slogan for the ABR is “Someone You Can Trust”. There are many other designations depending on the Real Estate Agents focus.

When you choose to buy a home, it is a good idea to work with a Realtor that has the ABR designation. This Realtor has received special training to help buyers. They are a designated buyers representative and represent only your best interests. When you find a home that you would like to buy, the ABR Realtor can pull up all the information you need to make an informed decision before you make an offer. The Accredited Buyers Representative will make a list of each of the homes in a neighborhood that have sold in the past year. They will also give you a detailed list of everything that is on the market currently and any homes that may have been for sale during the past year that did not sale. You can see how many days the homes were on the market and read a full page description on each home to compare apples with apples. You may find that the asking price is a lot higher than what the actual sales have been in the neighborhood. Your agent will help you make an offer based on the information you learn.

It is still a good idea to work with an accredited buyer representative even if you decide to buy a home “For Sale By Owner”. Sometimes “For Sale By Owners” ask the highest price in the neighborhood. If you do not have someone represent you and do research for you- you may pay too much and have a difficult time selling for the price you need when you need to sell. Sometimes “For Sale By Owners” guesstimate on square footage. Before you make an offer, you want to verify all of the information through the tax records- A Realtor can do this for you.

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Should I Sell or Buy My Home First?

Buying the second home is much more complicated than buying the first home. When you bought your first home, all you had to do was wait for the closing date and move in. When you already own a home, you usually must sell the home you are living in to have the needed funds to purchase the next home.

If you sell your existing home and do not have another home to move into then you might have to rent a home for awhile. That means you get to move twice- that is no fun! If you buy the “new home” before you sell your existing home, then you are responsible for two mortgage payments. You need to apply the Ben Franklin approach and write a list of pros and cons for each scenerio. Which would be less stressful- an extra move or an extra mortgage payment?

If you decide to buy a home before selling your home (and having two mortgage payments would be very difficult); make sure that you have a contingency in the contract that you are only purchasing the home if your existing home sells first. This can work out well if you are planning to build a home that will take 4-6 months to complete. If you are purchasing a resale home, this could hurt you. Many home sellers do not want to wait for your home to sell before closing on their home. They might need to sell right away or not want to be in limbo any longer than necessary. If you have a contingency in the contract, you are coming from a weaker standpoint. Most likely you will not have much negotiating room and will end up paying at least full asking price for the favor.

If you decide to sell your home before buying another home, you should plan on a double move. This means that you will need to move to temporary headquarters after selling your home until you find the home of your dreams. Moving can be very expensive- but the good news is that because you did not have to sell your home; you can hold out for a higher selling price.

Of course, the best case scenerio would be to sell your home before purchasing the new home and only have to move once. There is a way to do this. If you are building a home you know time is on your side. You sign a contract with a contingency with the home builder stating that you will purchase the home the builder is selling if your home sells within the next 4-6 months. Your Realtor will have all of the necessary forms. You list your home with the Realtor you are buying a home through and try to sell it. Your asking price can be on the higher end of the scale since you have time on your side. By the way, if you buy and sell a home through the same Realtor you will usually save more money in the long run. When you receive a good offer, you accept the offer contingent to you being able to rent the property back for the length of time it takes for your home to be built. During the Spring months when homes sell the fastest, you could do use the same strategy and buy a resale home if you do not want to build a custom home.

Before you sell your existing home or buy another home, it is a good idea to talk to a lender to see what type of home you can qualify for. This will help eliminate many hours of frustration.

It is also a good idea to get a market analysis from a Realtor that works in your area.

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What Should You Expect In A Realtor?

There are 36,000 licensed Realtors in Arizona. When you list your home to sell, it is important to list it with a Realtor that specializes in your neighborhood. You need someone that loves Val Vista Lakes as much as you do and promotes it like crazy. Do you really want a Realtor that advertises homes all over the valley? How much attention will your home receive?

There are some tactics you may want to be on the look out for. Don’t fall for a Realtor that claims to sell all of his/her listings within 10-30 days. No one can make that kind of a claim honestly. It is true that many homes do sell quickly but the price range is in the $40,000- $105,000 range. There are many buyers in that price range. If a Realtor shows a list of homes that sold in 10 days or less as him/her-

1. Was it a single family home or a mobile home?

2. What was the price it actually sold for (not listing price)?

3. Does the 10 days include the time for the whole listing minus the escrow period or just the last

time the home was entered into the Multiple Listing Service (to make it appear only 10 days)?

Some Realtors claim that they can sell your home for $10,000-$20,000 more than other Realtors. This is just a gimmick to get your business. If a Realtor tries to get your business from deceitful advertising - who’s best interest do they represent? Do you really want to work with someone you can’t trust? How do you choose the right Realtor to work with? There are many to choose from. Here are some tips that might help you find the best Realtor for your needs.

Ask your Realtor to show you a report of all the homes that have recently sold, are currently for sale and the homes that were on the market that never sold in your neighborhood. To get an accurate number of how many days they were on the market- add up all of the days for each time the home was re-listed (even by the same realtor). You will notice that the homes that sold the fastest and for the highest prices looked “model ready”.

Here are some good questions to ask the Realtor that you want to represent you:1. Does the Realtor advertise in Val Vista Lakes frequently?

2. Does the Realtor have at least 10 references- people that have been happy with their services

that live or have lived in Val Vista Lakes.

3. Has the Realtor received any awards for performance?

4. Has the Realtor continued their education- received any further designations?

5. Does the Realtor advertise on the Internet? How many sites?

6. Is the Realtor flexible with commission or does the Realtor work with a Brokerage that offers

no flexibility?

7. Is the Realtor honest and really looking out for your best interests?

8. Do other Realtor’s speak highly of the Realtor you want to work with- how is their work

ethic? Do they fully cooperate and work well together with other Realtor’s so transactions

run smoothly?

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Sellers- This Is The Best Time Of Year To Sell Your Home!

In Val Vista Lakes, the best time to sell your home is April, May and June. Many homebuyers

start looking for a new home during these months so they can have their family settled in for the new school year. Prices tend to jump up in the Spring because the demand for homes is much greater. Statistics claims that half of the homebuyers that buy homes, buy during this time. That leaves the other half of homebuyers to buy during July through March.

Our area is growing so fast, and Val Vista Lakes is such a desirable place to live that we attract homebuyers year round. Many out of town buyers find Val Vista Lake homes on the Internet and see that our community has so much more to offer than most other communities. These are the buyers that buy year round. They transfer to our area from all over the United States.

The local buyers are those that tend to buy homes between April and June- that is why there are so many more people looking during that time. The local buyers have been watching the area they want to move to and tend to plan their move around the school year. It only makes sense that when you have children in school, you want them to finish the school year in May and move in to the new home by August.

What can you do to make your home look the most marketable during this time of year when so many people are moving around? It is a good idea to look at some other homes in your area to get a feel for the market. A good Realtor will want you to see what buyers see. Your Realtor should be willing to show you homes in the neighborhood that compare with yours. Notice how clean the other homes are. If you have a beautiful home but the walls need paint and the carpet is worn- your home may show as a “fixer upper” and you may loose thousands of dollars off of what you could have potentially made on the sale of your home. This is the best time of year to show off all of those beautiful flowers in your yard. Making sure the lawn is green and trim adds so much to curb appeal. It’s also a good idea to paint and freshen up your front door area. Your prospective homebuyer will be checking out the front of the house while the Realtor is busy getting the key out of the lockbox. First impressions can make a big difference.

Some of the comparable prices on homes that your Realtor shows you, may be lower than what you had hoped for. There are a few homes in Val Vista Lakes that have been on the market for many months. Discouraged sellers have lowered their prices because their home is not selling. You must remember, they were trying to sell their home during the slow season. If they would have waited to sale their home during the peak season- they could have received much closer to their asking price. Even though some homes are being offered at very low prices (from being on the market so long)- Prices still tend to go up in the Spring. You may have noticed, April 1st was a large price hike day for many new homebuilders in the valley.

If you are thinking of selling your home- this is the best time of year to do so.

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Plan Ahead Maintenance Can Save Future Headaches

It doesn’t matter if your home was the first home built in Val Vista Lakes in the late 1980’s or completed 6 months ago- maintenance is still important. When a buyer buys a new home, the buyer should ask for a home warranty to cover major appliances for the first year. A homeowner can purchase a home warranty at any time- you don’t have to wait to buy or sell a home to benefit.

Home warranties typically cover the plumbing system, electrical system, garage door opener, water heater, range/oven ,built in microwave, dishwasher, garbage disposal and trash compactor. For an additional fee, you can get coverage for the air conditioner, refrigerator, washer/dryer, swimming pool and/or spa equipment. If one of these items has a problem a repair person will come out and either fix the item or replace it. If you don’t know how to get a home warranty- call a Realtor, they can recommend some companies. Be sure to read the fine print so there won’t be any surprises.

You should plan on budgeting about 1.25% of your homes value toward maintenance costs each year. Each season has different maintenance tasks. It is a good idea to calculate an annual maintenance budget on all major home components and mechanical systems such as the exterior paint, gutters, plumbing water heater, furnace and air conditioner. Try to establish the age and condition of each item and when replacement might be needed. Estimate the cost for each job and create a budget to repair these items. Be sure to add a few hundred dollars to cover unexpected repairs.

In Val Vista Lakes, residents don’t have to worry as much about roof maintenance. Most homes came with a 50 year warranty on the tiles. This can be a big savings compared to roofing costs across the country. The roof warranty should convey whether you are the original owner or not. It is a good idea to check the roof before the monsoon season for broken tiles and problems with flashing. By fixing any problems early you can avoid a leaky roof when the hard rain storms hit.

If your home needs to be painted, call a painting contractor as soon as possible. If you plan to do it yourself be prepared to spend a lot of time prepping the siding and trim before painting. The house must be cleared off and any damaged paint scraped away with a broad knife or wire brush, then apply primer before the finish coat. Good preparation ensures longer paint life.

Clear away leaves and debris from central air conditioning units and be sure to continue changing or cleaning the filters monthly. Flushing your water heater once a year can prevent future problems and help your unit last longer.

Inspect doors and windows. Look for hinges that are worn and doors that swing freely. Clean and lubricate locks once a year to make sure they remain operable. If you have a wooden deck or covered patio , it is good to clean and seal it each year. Repair any broken or damaged boards to prevent dry rot and possible termite problems.

If you make an annual maintenance schedule and budget ahead of time, it will save ou many headaches in unexpected surprises. As the old saying goes, an ounce of prevention is worth more than a pound of cure.

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Do I Have To Buy Or Sell A Home To Get A Home Warranty?

When your dishwasher quits working- wouldn’t it be nice to call a 1-800 number and get a specialist out right away? For a nominal service fee of $30-$50, if you have a Home Warranty, you can have many of your appliances serviced or replaced.

A Home Warranty or Home Protection Plan is an insurance policy that insures against defects in major systems of your home. Most companies cover air conditioning, plumbing and electrical items as well as built in items- dishwasher, garbage disposal, stove, oven, microwave, water heater. For an additional fee, you can cover your refrigerator, washer and dryer. Roof coverage is an additional option but is typically not needed for homes in Val Vista Lakes because the homes here are required to have tile roofs and most have a 50 year warranty.

The Home Warranty lasts for a full year and has optional renewal from year to year. You do not need to sell or buy a home in order to get the benefits of a home warranty. The cost is generally between $400-$500 but add $125 if you have a swimming pool that you want to cover. If your home is older than 8 years old- it is a good idea to maintain a Home Warranty. To find out about some of the different companies, call your realtor. Your real estate professional has probably worked with several different companies and can tell you the ones that they feel have good customer service.

If you have decided to sell your home, it is a good idea to pay for a home warranty and obtain sellers coverage to cover your home until it sells. That way if any of the major items break down (such as an air conditioning unit), it is covered and you don’t have to pay for the home warranty until closing. Sellers coverage is an added .67-.85c per day. I would not let the buyer know that you have the coverage, because you want to use the Home Warranty as a negotiating tool. Most buyers will ask you to pay for the Home Warranty- but you don’t want to give it away.

If you decide, as the seller, to purchase a Home Warranty, it is a good idea to purchase it before the Home Inspection. If one of your appliances shows up as having problems from the inspection, the Home Warranty kicks in and covers all major costs for repairs or replacement.

Be sure to read the policy carefully so you know which items are covered. Anything that was broken before the Home Warranty was in place is usually not covered and is considered a pre-existing condition. If you have 2 or more air conditioners, make sure that they are all covered and not just one. There is usually no additional fee to cover extra air conditioners. Sometimes water softeners are not covered. Taylor the policy to your needs.

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Not All Home Inspectors Are Certified!

When you receive a contract on your home from a willing buyer- there are several steps you must take before the sale of your home is finalized. A home inspection is not required by state law- but it does protect both the seller and the buyer by showing full disclosure on many existing or potential problems.

Be careful if you are buying a home without the aid of a real estate professional. Make sure you have all of the necessary forms filled out so that law suits can be avoided. Most Realtors will encourage their buyer to have a home inspection within the first 10 days of the contract. If there are problems with the home that an inspector finds and the seller is not willing to fix such problems; the buyer can walk away from the contract and receive a full refund of Earnest Money.

A full inspection report can be 15-40 pages long depending on the inspector. It is very important to hire an inspector that is fully certified. In the state of Arizona, currently anyone can open up an office without any credentials and claim to be a home inspector. Be sure that any inspector you hire is ASHI certified. This means that they have been trained through the American Society of Home Inspectors and must follow and abide by the Standards of Practice and Code of Ethics. Each ASHI certified inspector has performed no fewer than 250 fee-paid inspections in accordance with ASHI Standards of Practice.

Home Inspections began in the 1950’s and by the 1970’s were considered by many consumers to be essential to the real estate transaction. The escalating demand was due to a growing desire by homebuyers to learn about the condition of a house prior to purchase. Meeting the expectations of consumers required a unique discipline, distinct from construction, engineering, architecture, or municipal building inspection. As such, , home inspection requires its own set of professional guidelines and qualifications. The American Society of Home Inspectors (ASHI) formed in 1976 and established a code of ethics to help buyers and sellers make real estate transaction decisions based on accurate, objective information. ASHI is a not-for-profit organization with the objective to promote excellence within the profession and continual improvement of its’ members inspection services to the public.

Imagine the possible nightmare if you hired someone without knowing that they are certified to do a home inspection. Some “inspectors” have made false claims saying that something is wrong with a house when it isn’t and the seller loses the sale of the home. Or, what if there is a major defect in the home and someone without training misses it. This is bad for both seller and buyer.

A home inspector is to give a detailed analysis for each of the following areas:

1) Structural System 2) Exterior 3) Roof System 4) Plumbing System 5) Electrical System 6) Heating System 7) Air conditioning Systems 8) Interior 9) Insulation and Ventilation 10) Fireplaces and Solid Fuel Burning Appliances

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Who Wins With the “Right of First Refusal”- Buyer or Seller?

If you are a home owner and must sell your home to buy another home; you should make an offer on a home you are to purchase contingent to your home selling. Most sellers will not agree to this arrangement unless they give you a right of first refusal. What does it mean to have a right of first refusal?

The right of first refusal means that you are the first person in line to buy the home that you put an offer on. Usually the right is accompanied with a limited time period that you can remove the contingency to purchase the home. Most buyers are given between 48 to 72 hours to remove a contingency when another offer is presented. This is good for the buyer because it gives them more time to see how they can qualify for the new home loan without keeping the contingency in the contract. It is good for the seller to have another offer on the home only if the home remains in active status and is not in the “accepting back ups” mode only. If the home is not showing as “Active” on the Multiple Listing Service”- the number of showings dwindle tremendously. This has to all be spelled out explicitly so no one has any questions. When another offer comes in on the property, the original offer amount cannot be disclosed unless the right of first refusal states that the next buyer must match or beat the offer.

Why would a buyer want to use the “right of first refusal” in a contract? The buyer understands that they are in a weakened position by having to have a contingency in the contract but they fell in love with your home and want to tie it up to look at all of the possible ways to purchase it at any cost. Many buyers feel there is strength in being first in line. Depending on the buyers financial resources, they may decide to take out a bridge loan against the equity on their current loan to complete the purchase. The buyers may decide to rent their current home so they can qualify for a loan to purchase your home.

The “right of First refusal” can be good for the seller if worded to protect the seller and bad for the seller if not written correctly. It is imperative to seek a real estate professional or an attorney if you choose to accept a contingency with a right of first refusal. If written incorrectly, the property can be tied up for months while the buyer is waiting to sell their home. Also, the way the right of first refusal is written determines if the original buyers price is set or if it can begin a bidding war.

It is important for both buyers and sellers to understand what “The Right of First Refusal” really is so they can both feel good about the agreement that they are making with each other.

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Are There Really Termites In Val Vista Lakes?

Summer of 2000 was the first report I heard that there were termites in Val Vista Lakes at a home that I was selling. I had a listing in a Val Vista Lakes area where homes were approaching the 10 year old mark. I have sold many homes in Val Vista Lakes, but until last summer- termites were never a concern.

I was shocked when the termite report came back positive. Instead of just accepting the news, the buyer and I decided to investigate further. We requested a 2nd opinion from a different termite company. The 2nd termite company told us that they could not find any sign of termites. We called back the 1st termite company and told them that we wanted their supervisor to come and make a report of his findings. The first termite company came back and the supervisor said that they would stand behind their original decision.

If the 1st termite company stood behind their decision, not only did this mean hundreds of dollars in expense to the homeowner- but it also meant that this decision was to be filed on public record and could not be altered.

Now we had nervous buyers and nervous sellers. Of course, if there really were termites, the sellers were planning on taking care of the problem. The buyers Realtor and myself decided that we needed further investigation. We called back the 1st termite company and told them that we were going to get the Structural Pest Commission involved.

The Structural Pest Commission regulates Termite Companies. A termite company can get in serious trouble if they claim there are termites and there are none. It was amazing how quickly the 1st termite company changed their report once they realized that we were not backing down until we found out the truth. Once we mentioned the Structural Pest Commission Inspectors would be out the next day- the 1st termite company apologized for their error and changed their report.

To me as a Realtor, this was very disturbing- and very unfair to everyone involved. Selling or buying a home is stressful enough without having to prove false claims. I thought that the story was over until I took a listing for another home in Val Vista Lakes and ran into the very same problem in January 2001.

This time the first termite company was a totally different company that in the first story. Again, I had to threaten the termite company that I was going to have the Structural Pest Commission come and see if there were termites and............ wouldn’t you know it- they magically changed their report.

I have personally never sold a home in Val Vista Lakes that really had termites. I am not saying that there has never been a home in Val Vista Lakes that has had termites. I am saying, before you fork out several hundred or even thousands of dollars needlessly- make sure you have your Realtor find out the truth for you.

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Is Your Home In Val Vista Lakes Appreciating?

Where you live in Gilbert makes a big difference on how quickly your home appreciates or depreciates. The number one factor with home appreciation or depreciation is location, location, location.

When you buy a home there is a lot to take into consideration. It is important for a buyer to work with a Realtor that knows the Gilbert area well. Ask your Realtor if they have the ABR designation. ABR stands for Accredited Buyers Representative. You deserve to work with a Realtor that has had specialized training in helping you the buyer get the most value for your home buying dollar. Value includes appreciation for the area you want to buy a home in.

According to the http://hothomes.azcentral.com website... It appears that 85296 and 85249 (Gilbert zip codes) are the only zip codes in the Phoenix East Valley to have lost equity in the year 2000. Zip code 85296 gained 6.0 in the year 1999 and lost 1.3% equity in the year 2000. Zip code 85249 appreciated 8.9 % in 1999 and lost 1.0 % in the year 2000. Why are these areas now depreciating when the year prior they both appreciated?

There are many factors to consider in buying a home at the right location. What are some questions you will want to explore?

1. Is the home in a flood zone?

2. Is the home in the flight path and if it is what is the noise level?

3. Is there a major railroad track in the area with trains that come through both night and day?

4. Is there an industrial plant nearby? Does the plant cause pollution? Is the plant an eye sore?

5. Is there a major freeway or potential major freeway within 1/2 mile of the home?

Fortunately for Val Vista Lakes, we don’t have to worry about any of the above factors at this time. In 1999 the homes in our community appreciated 6.6 % and again appreciated 6.2 % in the year 2000.

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What Is Involved In Selling Your Home Yourself?

Sometimes homeowners feel that they should try to sell their home themselves saving them thousands of dollars in commissions. If you are considering doing just this- you may want to see what is really involved.

1. When you sell your home, you need to determine what you qualify for in your next home buying purchase. What is your buying power? What is your debt ratio? How is your credit? There would be nothing worse than selling your home and discovering that you don’t qualify for the home you want to buy.

2. Check various Internet sites to determine the accurate value of your home and to determine if you are paying the best price on the home you would like to purchase. You will want to check out the schools and crime for the area you are interested in buying in. Also make sure that there are no factors that could hurt resale and depreciate property values.

3. The best place to advertise your home is on the Internet. Find out the best sites. Most educated buyers use the Internet to find homes. Advertising in magazines can cost hundreds of dollars and chances are slim you will sell to the readers.

4. Be prepared to negotiate based on the research you have done. Sellers need to prove home value, show accurate square footage and disclose any concerns about the property. Buyers need to do their homework to receive the best price for the home they are purchasing.

5. Make sure that all of the necessary inspections and reports are done in a timely fashion. Inspections may include termites, dry rot, asbestos, faulty structure and roof condition. You will want to see the preliminary Title Report before closing on the sale of the home. It is important to make sure the home has a clear title so problems don’t show up after it is too late. The contract usually gives time limits to obtain inspections and appraisals. If such items are not completed in time- penalties may occur and you may lose the sale from breach of contract.

6. Incase your home doesn’t sell within a 3 month time frame- you will need to continue doing research to make sure that the market hasn’t changed significantly since you began the selling or buying process. If interest rates have fallen or have changed significantly, this can make a big difference in the value of your home. If you have a neighbor that sold their home (same size as yours) far below your asking price; find out why? Was there home not as desirable as yours or are you pricing your home too high? If you are buying a home, it would be best to work with a Realtor, Buyer’s Agent (ABR designation) because you would have representation and are usually not expected to pay any commission (the seller pays the Realtor’s commission). The Buyer’s Agent can pull up the comparables to make sure that the home is not overpriced. Most For Sale By Owner sellers are willing to pay a Realtor that can sell their home.

7. You don’t want just anyone viewing the home you are selling. Make sure that the potential buyers have been pre-qualified with a lender before you let them see your home. You could waste many hours running back and forth to show just any buyer your home. It is also advisable to have at least one man (or 2 adults) at your home when showing it for safety reasons. Make sure you call a friend to let them know you will be showing your home so someone is aware incase you run into any problems.

If you decide that your time is best spent having a Realtor sell your home, you can usually save thousands of dollars by selling your home and buying the next home through the same Realtor. Make sure your Realtor is an expert in working with sellers and buyers for the best results.

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Find The Best Mortgage To Buy or Refinance Your Home

Wouldn’t it be nice if home buyers and home owners could go to one source to find the best mortgage to buy or refinance their residences? Some home lenders want you to think they are the best place to find the best home mortgage. But they only offer mortgages which are best for the lenders, not necessarily what is best for the borrowers. Although, there are some very good home lenders that live in Val Vista Lakes and offer great programs.

TODAY IS ONE OF THOSE FEW NEAR-PERFECT TIMES TO BUY OR REFINANCE A HOME! Interest rates are currently at their lowest point this year. This is an excellent time to look at your personal financial situation to see if you should (1) buy a home, (2) refinance your home, (3) buy investment property, and/or (4) refinance your investment property.

IF YOU WANT TO BUY A HOME, SHOP FOR A MORTGAGE FIRST. Home buyers have different motivations than home owners. Home buyers primarily want to find and buy the best home they can afford. You will be in a much better negotiating position, if you have a letter from a lender showing that you are pre-qualified for a loan. Homeowners want to refinance to (1) reduce their interest rate, thus reducing their monthly payments, and/or (2) take out tax-free cash from their home equity.

The best way to compare loans is to ask the lender to calculate the APR (annual percentage rate). The APR includes the up-front loan fee. That’s why you might pay 7% on a home loan but the APR will be 7.2%, for example, because the APR includes the up-front loan fee “points” paid in the year of loan origination. However, if you are refinancing your existing home loan, in my opinion paying any loan fee is a waste of money. Instead, I recommend obtaining a so-called “no cost” refinanced home loan without any loan fees and few or no other up-front acquisition costs. Why? The reason is loan fees paid to obtain a home mortgage refinance must be amoritized (deducted) over the life of the mortgage. For example: Suppose you pay a $1,000 loan fee to refinance your home mortgage. Instead of being able to fully deduct it in the year paid, as you could when you obtained a home acquisition mortgage, a loan fee paid on a refinanced mortgage must be deducted over the 30-year (or 15-year) life of the mortgage. That means, in this example, you can deduct $33.33 for each of the next 30 years. Worse yet, chances are you will forget to claim your itemized deduction in each of the next 30 years because the annual deduction amount is so small. Now you understand why I don’t recommend paying a loan fee to refinance your home mortgage (but it can be smart to pay a fully tax-deductible loan fee when buying down a brand-new “home acquisition” mortgage to buy your principal residence).

To summarize, if you are buying a home, it’s all right to pay a loan fee of one or two points because you can fully deduct that loan fee paid in the year of home acquisition any you will get the lowest possible interest rate on your 30-year mortgage. However, if you are refinancing your home loan, it is usually smartest to obtain a so-called “no cost” refinanced mortgage at a slightly- higher interest rate because any loan fee paid must be amoritized over the mortgage life.

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How To Get The Best Appraisal Of Your Home

Appraisal is a very subjective skill dependent on the appraiser’s ability and experience. Two different appraisers can define the value of a home tens of thousands of dollars apart. There are appraisers that determine home values in Val Vista Lakes frequently. They understand the market in our area and appraise appropriately. Another appraiser may come from Peoria to appraise a Val Vista Lakes home and suggest the value is $5,000 to $45,000 less than the other appraiser.

Why? Val Vista Lakes is a very exclusive area. There is no other development in the entire Phoenix area that can even compare. Although there are other lake communities- none of them have the outstanding amenities that we have. Some other communities may have a tennis court or a small reception area; but Val Vista Lakes far outweighs them with a multi-million dollar clubhouse, 8 tennis courts, racquet ball courts, weight room, heated lap pool, beach, etc. etc.

An appraiser from Peoria may not even take these items into consideration. If they cannot find a comparable property in Val Vista Lakes- they might compare your home with a home 3 miles away that is by a train track, a power plant, in the flight path or some other factor that determines value. An appraiser from Peoria may have no clue as to the true value of your home. A real estate appraisal is an estimate of the market value of a property. By, definition, that estimate is an opinion of the most likely price at which a property will change ownership, with neither the buyer nor seller being under pressure to buy or sell.

It is so important for you as a seller to work with a Realtor that knows your neighborhood well and helps you determine the accurate price so you do not list your home too low. Many Realtors that do not work in targeted areas and sell homes all over the valley may advertise that they can sell your home in “23 days” for full price. Any Realtor can sell your home for full price in “23 days” if they list your home way below market value. It would be easy for a Realtor to justify a lower price by comparing your home with homes sold in distress or homes in areas that don’t have high resale value.

It is a good idea work with a mortgage company that will allow you to suggest one or two appraisers that you feel comfortable with. If the appraiser is not on their “list’, as long as the appraiser is licensed, it is easy to add them to the “list”. Your Realtor will be able to give you names of appraisers that work in our area frequently. Appraisers call me quite often wanting to know how I determined the price on a home that recently sold in Val Vista Lakes. If the home sold for quite a bit more than comparable homes in Val Vista Lakes- the appraiser wants to know why and how that house might be different or similar to a house they are currently appraising. These appraisers are the ones you want working for you- they are truly searching to get you top dollar for your home.

What are 5 things you can do to ensure the best possible appraisal for your home? (1) Get your home into its best possible condition. (2) Accompany the appraiser; ask for a business card. (3Hand the appraiser a list of the home’s features. (4) Give your appraiser a list of recent, nearby home sale prices. (This shows you have done your homework) (5) Insist the lender give you a copy of the appraisal.

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Is It Better To Refinance Or Pay Off Your Mortgage Early?

Interest rates are currently at their lowest in 30 years. Many people are questioning if this is a good time to refinance. The old rule was that if you could get an interest rate 2% lower than your current interest rate and cost less than 2 % of loan amount it would be a good time to refinance. Homes have appreciated at such a high rate during the past few years that now the general rule is if you can get a new mortgage with 1% below your current interest rate and get rid of paying the PMI, it is worth refinancing.

Suppose you were to take advantage of today’s interest rates; there are so many choices available- what is best for you? If you were going to purchase or refinance a home valued at $200,000 on a 30 year fixed rate mortgage, which scenerio would suit you best? Your monthly mortgage (payment and interest only) with a 6.5% rate would be $1264.14 and a 6.75% rate would be $1297.20. The difference is $33.00 per month. $33.00 per month doesn’t seem like much but on a 30 year note the difference is $11,952.00!

Is it better to refinance or prepay your mortgage? It is important to spend extra time shopping for the best mortgage before prepaying your existing mortgage so you know you are making the best decision.

Prepaying a mortgage will save interest dollars by (1) shortening the mortgage’s life to end mortgage interest payments a few years early and (2) paying down the mortgage faster than originally scheduled, thus reducing the annual interest cost while the mortgage still exists. However, if you only plan to stay in your home a short time, such as less than 10 years, the interest savings by making extra monthly mortgage principal payments, such as $100 per month, will be minimal because the extra principal pay down won’t be significant in just 10 years. This is especially true in the early years of your home loan when most of the monthly payments go to pay interest. However, substantial interest savings result from LONG-TERM extra principal prepayments month after month for many years, not from short term prepayment plans, such as only 10 years. Other reasons to prepay a mortgage include- no more hassle with monthly payments and more money to invest and buy things they want such as vacations, cars, boats, etc.

Mortgage prepayments can be very smart if you plan to keep your home a long time- at least 15 years. However, if you only plan to keep your home a few years, the interest savings from making extra principal mortgage prepayments won’t be very dramatic. Please be aware that your extra principal payments cannot be recovered from your lender if you encounter financial hardship, nor will your monthly mortgage payment be reduced. For this reason , if you want to set it aside in a high-yielding certificate of deposit or other safe investment where you can easily get it without incurring the costs and delays of home mortgage refinancing. When making extra mortgage principal prepayments, ALWAYS clearly indicate to the lender the extra payment is for principal reduction (otherwise, the lender might put it into your escrow impound account for property taxes and insurance payments). Some borrowers make extra principal payments with a separate check to the lender, clearly making it “principal reduction”.

There is no set answer for everyone. You know your needs and circumstances. Check with your C.P.A. and a lender you can trust before deciding whether to refinance or prepay your mortgage. Your Realtor will have names of lenders that are very helpful and can give you a quick response.

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How To Avoid The 5 Most Serious Mistakes When Selling Your Home

1) HAVE AN EXCELLENT REASON FOR SELLING YOUR HOME. If anyone knows that you must sell your home- chances are that you will not get a full price offer. In this market, investors are looking for great deal while interest rates are low and you don’t want to give your home away by letting others know you have to move. If you have your home listed with a Realtor, the other real estate agents showing the home will have no clue as to your urgency in selling and that is better for you!

2) DON’T BOTHER FIXING UP YOUR HOME OR HAVING IT PROFESSIONALLY INSPECTED BEFORE PUTTING IT ON THE MARKET FOR SALE. Homes that are the hardest to sell are fixer uppers (homes that need repairs or major renovation). If you live in an area with termites- it is good to get a termite inspection before you put your home on the market. Many termite companies will not charge unless your home is already for sale. If your home needs cosmetic fix-up work such as painting, cleaning, repairing, re-carpeting, and fresh landscaping, it is best to spend a few hundred dollars and get thousands back on the sale.

3) TRY TO SELL YOUR HOME ALONE WITHOUT A PROFESSIONAL REAL ESTATE AGENT. Virtually every home seller at least thinks “I wish I could sell my home alone without a real estate agent so I can save the sales commission.” However, only about 20% of the homes sales are made without the benefit of a realtor. Some agents will give you a break on the commission when you sell and charge less than normal if you end up buying your next home through the same realtor. Choose a realtor that aggressively works in your area.

4) OVERPRICE OR UNDER PRICE YOUR HOME. It is true that the number one reason a home doesn’t sell is from overpricing your home. If you want the best price, your home must be in mint condition and show almost like a Model Home. If your home needs work– realize that you will have to discount the price thousands of dollars to compete with hundreds of other homes on the market. Ask your Realtor for their Market Analysis and the best web sites to determine home value so you can feel good about the price you are asking. . If you set your price too high, Realtors will show your home as an example of why another home is a better buy. Your home can sit on the market for many months causing you much annoyance. Homes selling between $200,000 and $400,000 are currently slow- approximately 4-6 months where last year homes sold in an average of 2-3 months and 1 month if priced right. On the other hand, don’t under price your home. You can lose thousands of dollars and it hurts your neighbors homes if you sell your home too low.

5) DON’T BOTHER NEGOTIATING AND SETTING REASONABLE TIME LIMITS FOR REMOVAL OF PURCHASE OFFER CONTINGENCIES. Make sure that a buyer must show full loan approval within 10 days of the offer. This way you will not lose any potential buyers should the original buyer not buy your home. It is a good idea to write in the contract that the appraisal and inspection must be done within 10 days as well.

Selling your home is probably the biggest financial transaction of your lifetime. Properly structured, it can be an extremely profitable and even enjoyable event. Poorly planned, a home sale can be both an emotionally and financially detrimental event. By avoiding the 5 most common mistakes outlined in this article, your home sale can be highly advantageous.

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HOW TO GET RICH IN REAL ESTATE TODAY

Real estate offers many long term methods to become wealthy. However, it will NOT make you rich by next Friday! Investing in real estate is a get rich S-L-O-W investment. It’s also virtually the only reasonably safe way to start out with a small amount of cash, or nothing at all, and safely pyramid your wealth (usually without paying taxes on profits as our net estates grow- thanks to the wonderful tax laws benefiting real estate).

The number one rule in buying homes is location, location, location. Only buy homes in good neighborhoods that show consistent appreciation. After you own your sound, well-located home, make profitable improvements. Normal appreciation in market value should increase your equity. Paying down your mortgage gradually each month will also raise your equity. Of course, keep your credit report squeaky clean so you can continue to borrow more money.

Here are some techniques for becoming wealthy in real estate:

1. Acquire properties with profit potential. Buy homes that need work far below market value. Fix up the homes so they look like model homes and sale them for a good profit. As in any business, the success secret in real estate is to add more market value to the product than it costs to add that value. Paint is- by far- the most profitable improvement which real estate owners can make. Fresh paint, inside and outside, frequently adds thousands of dollars of market value for just a few hundred dollars in material costs (if you do the work yourself). By the way- if you hire a painting contractor make sure they are licensed and that their license is current. Equally important, painting will usually make the house sell faster. Why? Most people can’t visualize how a house can look better, they need to see it all ready improved to appreciate it.

2. If you don’t mind moving every 2 years you can buy just one run-down fixer-upper house, live in it, make profitable renovations, and sell it two years later at its increased market value for up to $250,000 tax-free profits- that’s $125,000 per year tax free! If you’re married, you can claim up to $500,000 tax-free principal residence sale profits every 24 months.

3. Buy fixer upper properties in a good location. Fix up the properties and rent them out with a break even (and best case scenerio- positive cash flow). Buy 3 properties a year and have 30 properties making money for you by the end of 10 years. 30 properties can provide a nice retirement income. Although you can earn a good positive cash flow on a two bedroom home- there seems to be a greater profit margin on buying 3 bedroom homes to rent. People can find many townhomes and condo’s that have 2 bedrooms to rent so there is more competition which demands lower rents.

4. Buy distress properties: foreclosures, R.E.O., probate properties and other distress situations.

5. Discounted mortgage profit opportunities. Buy mortgages at a discount of their face value. These mortgages are usually sold by people who carried back a first or second but now need cash.

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How To Avoid Buying or Selling A “Bad House”

Whether you want to buy a brand new house, or an older resale house, please be aware no house is perfect. The obvious goal should be to minimize the drawbacks of the house you buy. “A Bad House” means a house that does not get a good resale value.

Once you narrow your home choices, before making the “yes” or “no” buying decision, please use the Ben Franklin method to weigh the advantages and disadvantages of a particular house. On the left side of the paper, write down the good features of the particular house you are considering for purchase. Next, on the right side of the paper, write the drawbacks of the house. Then let that paper sit overnight. The next morning, before making your “buy” or “don’t buy” decision, look at the lists again to add any overlooked pros and cons. Then make your choice. Incidentally, the Ben Franklin method is a great way to make any major decision.

8 CRITICAL STEPS TO AVOID BUYING ‘A BAD HOUSE”

1. GET PRE-APPROVED FOR A HOME LOAN. Unless you plan to pay all-cash for your house, it is critical to get pre-approved for a home loan before shopping for a house. Why? The primary reason is so that you can negotiate with strength showing proof that you can afford the home. Negotiating in this way can help you get a better price and terms on the home. Being pre-qualified also helps you save a lot of time looking for exactly what you can afford.

2. HIRE A BUYER’S REAL ESTATE AGENT. This is easier said than done. A buyer’s agent represents only the home buyer- not the seller! The more educated buyers agents have the ABR designation which stands for Accredited Buyer Representative. These agents are taught to work only for you in getting the best price and terms to meet your goals.

3. CHECK SCHOOL DISTRICT QUALITY BEFORE CHECKING NEIGHBORHOODS. Unfortunately, the quality of public schools varies widely by school district and the individual schools. If you buy a house in a good public school district, your home’s market value will appreciate much better than if it is in an adjoining poor quality public school district.

4. BEFORE BUYING- CHECK THE CRIME RATE. Check with the local Police Department to get the latest statistics for the area you are thinking of buying a home in.

5. SHOP THE INTERNET AT REALTOR.COM AND OTHER WEBSITES. Your goal should be to get as much information as possible to learn what homes are available in the location you are considering for a home purchase.

6. CONSIDER THE PROS AND CONS OF BRAND NEW HOUSES. Just because a house is brand new, does not mean it is quality construction. Hire your own (ASHI) inspector to make sure that the quality of the house is good. Consider the reputation of the builder. The best builders are very proud of their reputation. Ask how close the home is to a major freeway, railroad tracks, power lines, industrial plants, flight patterns- anything that can affect future home value.

7. MAKE SURE THAT THE SELLER OFFERS YOU THE DISCLAIMER FORM STATING ANY POSSIBLE DEFECTS. This will protect you and the seller so that everyone is aware of any problems.

8. EVALUATE THE FLOOR PLAN CAREFULLY. The home’s structure, condition, and floorplan are fixed. Anything else can be changed. Also make sure the yard is adequate size.

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How To Sell Your Home For Top Price

With or Without A Real Estate Agent

If you really want TOP PRICE for your home, get it into tip-top near perfect condition before putting it on the market for sale. Often, all that is needed is fresh paint (the most profitable improvement of all), inside and outside, new carpets, new light fixtures, fresh landscaping, and minor repairs. By eliminating the need for fix-up or repairs, the home seller takes away the buyer’s negotiation tactic of discounting the price by more than the fix-up work will cost.

Make sure that your home smells fresh and inviting to potential homebuyers. If your home shows like a model, but has an odor- buyers will knock thousands of dollars off of the asking price. Some common odors are animal odors, cigarette or cigar smoke, moth balls and mold. Eliminate the source of the odor, disinfect and replace the odor by burning a vanilla scent (or other light scent) candle. Baking cookies works well also. The right aroma makes potential buyers want to stay longer.

You might consider getting a home warranty if your home is past seven years old. This will protect you incase a major appliance quits working and protect your homebuyer for one year after purchasing your home so the buyer won’t be calling you with future headaches. Of course- you don’t just give this to the buyer; you use it as a negotiation tool to help you receive top dollar.

LEARN THE TRUE MARKET VALUE OF YOUR HOME. An appraiser would consider the value of your home to similar homes in the same area that have sold within the past 6 months. If someone shows you the sales from 4 years ago- that is outdated information and has nothing to do with the sale of your home. You might read in the newspaper that home sales are the highest in many years- what are they really talking about? What area and what price range are the homes in that are selling the highest. Don’t generalize what you read- find out the specifics. It is not difficult to learn the true value of your home. You can either hire an appraiser for $300- $500 or ask a Realtor. Most Realtor’s offer a Free Market Analysis. Have the information handy to show potential buyers so they can see you have really done your homework.

If you don’t sell through a Realtor, you will have to market your home without the assistance of the multiple listing service. For Realtors, 80% of their sales come through the MLS- so you will need to advertise creatively. You can list your home for sale on the internet and through classified advertising- but remember ads are very expensive so plan on spending a minimum of $25 per week per newspaper. Most buyers are internet saavy and find homes on the web (whether they are working with a Realtor or not). Plan on holding several Open Houses, but make sure you do not have Open Houses unless you have someone else in the home with you (for safety reasons). Keep a log of the names and phone numbers of the buyers that come through your home so if you change the price or terms you can let them know. If you decide to list your home through a Realtor; you can show your agent the list of potential buyers and your Realtor will most likely not charge any commission if one of these buyers end up buying your home.